Fitch Ratings flags high fiscal deficit target
The Hindu
Agency says lower debt trajectory key to reviewing its negative rating outlook on India
Rating agencies are not enthused by the fiscal consolidation road map and the lack of major reform proposals in the Union Budget.
Fitch Ratings, which has a negative outlook on India’s sovereign rating, said that beyond the higher capex drive, the Budget was short on major reforms and the fiscal deficit target for 2022-23 at 6.4% of the GDP, is higher than the 6.1% it had anticipated.
“Deficit targets presented in the Union Budget on February 1 are a bit higher than our forecasts when we affirmed India’s ‘BBB-’/Negative sovereign rating in November,” Jeremy Zook, director and primary sovereign analyst for India at Fitch Ratings, said.
Everyone talks about the Airport Metro, but one look at the pillars and completion seems nowhere in sight. Meanwhile, a faster, cheaper, roomier alternative called the Suburban Rail Airport Corridor is finally getting off the drawing board. This dedicated corridor with its specialised coaches will link the airport to vast stretches of Bengaluru, where the metro connection is still years away.